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Tesla Posts Second Quarter Loss

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On: Fri, Aug 6, 2010 at 11:32AM | By: Sherry Christiansen


Tesla Posts Second Quarter Loss

In its first earnings report since its initial public offering in June, Tesla Motors Inc. reported a second quarter loss of $38.5 million, or $5.04 a share, up from about $10.8 million or $1.56 per share in the same quarter last year.

According to Musk the number one goal for Tesla this year is to build a prototype of the S Model Sedan that is very close (80-90%) to the final production model.The initial public offering was in fact, one of the few lucrative IPO’s in 2010.  Tesla actually raised approximately $226 million when it offered 13.3 shares for sale to the public.  Historically, this was the very first United States automobile companies to go public since Ford Motor Company in 1956. Palo Alto-based Tesla (NASDAQ:TSLA.O) reports second quarter revenue of $28.4 million, up from $26.9 million in the same quarter last year.

Palo Alto-based Tesla (NASDAQ:TSLA.O) reports second quarter revenue of $28.4 million, up from $26.9 million in the same quarter last year.
This year the company lost $26.1 million, compared to $10.7 million at this time last year.
The reason for such a wide second-quarter loss is due to the company investing into research and development for the launch of the all electric Tesla Model S Sedan that Tesla plans to mass market and launch in 2012.
Shares fell 5 percent in after-hours trading. They closed down more than 3 percent on the Nasdaq stock market during regular trading.
Tesla offered its initial IPO in late June of this year when shares debuted on the Nasdaq stock at $17 and then traded above $30. Although the company has lost money continuously since its inception, shares are now trading around $21.
Tesla, known for its $109,000 Roadster, reported a second-quarter net loss of $38.5 million, or $5.04 per share, compared to a loss of $10.8 million, or $1.56 per share, a year ago.
The Silicon Valley automaker had 7.64 million common shares outstanding in the second quarter, compared with 6.96 million last year although revenue was reportedly up 5.4% from last year at $28.4 million.
The loss was forecasted and the company expects to continue to be in the red for the foreseeable future, until it begins selling the Model S Sedan that will sell for around $57,400 (close to half of the cost of the current Roadster model), in 2012.
Tesla owner and CEO, Elon Musk stated; “The launch of the Model S remains on track with prototypes of the Model S battery and powertrain components being tested in house.”
"We have our heads down, focused on execution of our business plan," Musk added, explaining that Tesla’s manufacturing technicians were now located at the new Nummi Plant in California that was purchased from Toyota Motor Corp to build the Model S for "mining the layout and installation of equipment." This year the company lost $26.1 million, compared to $10.7 million at this time last year.
The reason for such a wide second-quarter loss is due to the company investing into research and development for the launch of the all electric Tesla Model S Sedan that Tesla plans to mass market and launch in 2012.
Shares fell 5 percent in after-hours trading. They closed down more than 3 percent on the Nasdaq stock market during regular trading.
Tesla offered its initial IPO in late June of this year when shares debuted on the Nasdaq stock at $17 and then traded above $30. Although the company has lost money continuously since its inception, shares are now trading around $21.
Tesla, known for its $109,000 Roadster, reported a second-quarter net loss of $38.5 million, or $5.04 per share, compared to a loss of $10.8 million, or $1.56 per share, a year ago.
The Silicon Valley automaker had 7.64 million common shares outstanding in the second quarter, compared with 6.96 million last year although revenue was reportedly up 5.4% from last year at $28.4 million.
The loss was predicted, and the company expects to continue to be in the red for the foreseeable future, until it begins selling the Model S Sedan that will sell for around $57,400 (close to half of the cost of the current Roadster model), in 2012.
Tesla owner and CEO, Elon Musk stated; “The launch of the Model S remains on track with prototypes of the Model S battery and powertrain components being tested in house.”
"We have our heads down, focused on execution of our business plan," Musk added, explaining that Tesla’s manufacturing technicians were now located at the new Nummi Plant in California that was purchased from Toyota Motor Corp to build the Model S for "mining the layout and installation of equipment."
According to Musk the number one goal for Tesla this year is to build a prototype of the S Model Sedan that is very close (80-90%) to the final production model.
The initial public offering was in fact, one of the few lucrative IPO’s in 2010. Tesla actually raised approximately $226 million when it offered 13.3 shares for sale to the public. Historically, this was the very first United States automobile companies to go public since Ford Motor Company in 1956.

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